IPlanet back into Sun

Leaving AOL in the cold...

Joint Sun and AOL subsidiary iPlanet is to be demerged and incorporated back into Sun's main operation by next year, leaving AOL out of the alliance. The separation will leave Sun free to incorporate iPlanet's software into its new Sun ONE web strategy. The 500 iPlanet jobs axed recently as a result of AOL cutbacks will be re-instated on Sun's payroll and offered to current Sun employees. A spokeswoman for Sun claimed the move did not signal a rift with AOL, and that the two companies had originally formed iPlanet with the intention that it would become a division of Sun. She said Sun and AOL will continue to expand their alliance in the future.